3 Crypto Exchanges That Have Never Been Hacked (2024)
Picking a reliable crypto exchange from hundreds of options can be difficult. One way to figure out if an exchange is secure or not is to look at its history for hacks. If any incidents occurred, check how the platform improved its security measures afterward.
Centralized exchanges (CEXes) are among the easiest ways to buy crypto today. These platforms work like most traditional websites. Generally, you sign up with your email and create a password. Then, you pass the identity verification process and attach your bank card or another payment option. They are called centralized because you trust the platform with your personal information and fund management. The easy registration and the possibility to buy crypto with your bank card make centralized crypto exchanges a go-to option for many people.
An alternative to centralized exchanges is decentralized exchanges (DEXes). To use a DEX, you don’t need to provide any personal details. What you need is a crypto wallet to connect to decentralized platforms. Given their private nature, DEXes don’t allow trading with a bank card. They only offer crypto-to-crypto trading, so you first need to buy crypto on a centralized exchange, transfer it to your wallet, and then trade it on a DEX.
Both centralized and decentralized exchanges have their benefits and drawbacks. If we put it briefly, it's about convenience vs privacy.
You can learn more about the differences between centralized and decentralized exchanges in one of our previous articles.
According to the data aggregator platform CoinGecko, today the trading volume on centralized exchanges exceeds that of decentralized ones. Currently, CoinGecko tracks 223 centralized exchanges, which differ in a variety of factors, including user experience, the number of listed cryptos, and security features. History shows that even the biggest platforms may experience hacks and loss of funds. That’s why relying solely on an exchange's popularity and trading volume when choosing a platform is not the best approach. It’s safer to look into the platform’s security metrics when making a decision. In this article, we mention 3 crypto exchanges that have never been hacked and analyze their security features.
3 Crypto Exchanges With No History of Hacks
For hackers, crypto exchanges are a popular target for several reasons. First, these platforms hold large amounts of cryptocurrencies. Then, transactions made through blockchain can not be reversed, which makes it more challenging for platforms to recover their assets. A hacker may find a vulnerability in the security system of an exchange, get unauthorized access, and steal funds. Last year, centralized crypto exchanges lost around $409 million in hacks, according to a report by Immunefi.
Outcomes for users in case of hacks can be different. The exchange may compensate them from an insurance fund, assets may be recovered in the process of investigation, or users may not get back their stolen assets at all. It depends on the exchange, and what measures it uses to handle unexpected situations. In the case of licensed platforms, customers have more protection due to regulation by financial authorities and consumer protection laws.
Anyway, losing funds, even temporarily, is something that no one wants to experience. We researched the history of hacks based on available information and records online. As a result, we found out that these 3 crypto exchanges have never been hacked:
1. WhiteBIT
www.whitebit.com
WhiteBIT crypto exchange. Source: whitebit.com
Since its foundation in 2018 in Ukraine, WhiteBIT hasn’t been successfully hacked. There are no records of security breaches or stolen funds.
WhiteBIT is one of the largest European centralized exchanges with more than 4 million users. At the time of writing, the exchange’s daily trading volume exceeds $1 billion. The platform lists 278 cryptocurrencies, including its native WhiteBIT Coin (WBT). Supported fiat payments include the US dollar (USD), Euro (EUR), Ukrainian hryvnia (UAH), British Pound (GBP), and more.
WhiteBIT ticks all security boxes and is among the top 3 safest crypto exchanges, according to CER.live. The exchange is licensed in multiple European countries, including Lithuania, Spain, Bulgaria, Poland, Czech Republic, and more. Its safety measures include:
- Digital assets insurance: a fund to protect users’ assets in case of any mishaps
- Server Security: 100/100 score in ensuring secure communication between the exchange and the user
- Cold storage: 96% of user assets are stored offline, on cold wallets
- User Security: 100/100 score in protecting user accounts from attacks through measures like Two-factor authentication (2FA), and automatic logouts
- Proof of Reserves: It’s verified by third-party auditors that the exchange has enough assets to cover its liabilities to users
- Regular bug bounties: The exchange initiates reward programs that encourage security researchers to find vulnerabilities in its code and get paid. There are several ongoing bounties by the exchange if that’s something that interests you.
- ISO 27001 standardization: WhiteBIT corresponds to the internationally recognized standard for managing information security, including risk management and incident response among other things.
2. bitFlyer
bitFlyer crypto exchange. Source: bitflyer.com
bitFlyer is among the most popular exchanges in Japan. It was founded in 2014 and then expanded its services to Europe and the US. bitFlyer is licensed to operate in these jurisdictions. According to CoinMarketCap, the exchange supports 13 cryptocurrencies, including Bitcoin, Ethereum, Bitcoin Cash, and Litecoin. Its daily trading volume is around $12.4 million.
bitFlyer is highly focused on its security and carries out regular checks to ensure funds are safe. One of the latest inspections the platform informed customers of was made at the end of May after another Japenese crypto exchange, DMM suffered a major hack. DMM lost around 4,500 Bitcoins, worth $305 million after hackers gained unauthorized access to one of its wallets. In a note, bitFlyer said the team rechecked the platform to discover similar vulnerabilities and assured customers their funds are stored safely. bitFlyer mentioned that it has never been hacked. The platform’s security measures include:
- Digital assets insurance: A fund to cover customer fund losses in case of theft and hacks
- Member of the Japan Blockchain Association (JBA): An organization dedicated to the development and regulation of the crypto industry.
- Cold storage: 100% of assets are stored offline in cold wallets.
- User Security: Rated 83/100 according to Cer.live, with features such as two-factor authentication (2FA) and automatic logouts.
3. Phemex
www.phemex.com
Phemex crypto exchange. Source. phemex.com
The youngest exchange on our list, Phemex was founded in 2019 in Singapore by former Morgan Stanley executives. It supports over 300 cryptocurrencies and is available in more than 200 countries, including Hong Kong, China, Bermuda, and Seychelles. Phemex is registered as a Money Services Business (MSB) with the U.S. Financial Crimes Enforcement Network (FinCEN). Besides, it holds licenses in Canada, Lithuania, and other jurisdictions. Supported fiat currencies include the US dollar, Euro, Japanese Yen, Swiss Franc, and British Pound Sterling. Like WhiteBIT and Bitflyer, Phemex has a hack-free history. The daily trading volume on Phemex exceeds $60 million. Its security measures include:
- Cold storage: Phemex uses a Hierarchical Deterministic Cold Wallet System meaning that every user has a cold wallet isolated from online attacks.
- User security: 100/100 user security according to Cer.live. Phemex’s account protection features include two-factor authentication, an anti-phishing code, and a double-entry bookkeeping system.
- Digital assets insurance: A fund to cover customer fund losses in case of theft and hacks
- Proof of Reserves: The Proof of Reserves (PoR) tool by Phemex allows all users to verify that their balances are actually backed by real assets held in Phemex wallets.
How to Stay Safe on a Crypto Exchange
The first step to protect your assets is using a reliable crypto exchange. While no platform can guarantee 100% protection against losses, considering their security measures will provide you with some insights. To keep your account safe, follow these security best practices: don’t share access to your account with anyone, turn on two-step authentication, use a strong password, and avoid phishing attacks by checking website URLs and not clicking on suspicious links. Sometimes misleading ads and spammy messages make it easy to overlook security. Before making any transactions or responding to messages, take your time to determine how reliable the source or request is. Often, this step helps safeguard your assets.
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